Budget shortfall looms

JOSH FAHLSING

Published
8:00 pm EDT, Tuesday, September 21, 2004

State legislators are considering a bill to levy a third of the county operating millage in July 2005 and two-thirds in December 2005. In 2006 it would levy two-thirds in July and one-third in December, and in 2007 it would levy the full 100 percent in July. Also, beginning with this years levy in December, 33 percent of the money would go into a reserve fund to supplement what the state will not pay in revenue sharing.

Commissioners and Huron County Treasurer Roberta Moetteli said during Tuesday morning's committee meeting of the whole that if the bill fails, Michigan's counties could see revenue sharing cut by as much as 38 percent.

Huron County stands to lose as much as $587,632 if revenue sharing is cut completely, Moetteli said. The county had budgeted $685,000 in revenue sharing for 2004, but likely won't get close to that number. Moetteli said the state has paid in about $230,000 in revenue sharing this year, but has stopped paying until its own budget is resolved.

Finance Committee Chairman Ron Wruble said projections gathered from department heads show the county heading for a total revenue of about $9.6 million for 2004. He said expense requests for the county's departments totaled about $10.5 million.

"In ballpark numbers we're anywhere from $500,000 on the short side, to about $800,000 or $900,000 on the high side, short of a balanced budget, after looking at last year's expenses," Wruble told department heads gathered in the gallery Tuesday morning. "In general terms and round numbers, that's where we're at."

Wruble said he asked department heads to be present Tuesday so everyone would know the situation and have the ability to offer input.

"The fund balance is going to be pretty well exhausted so we're at a place where we need to make end's meet," Wruble said.

He asked department heads to find areas in their expense budgets where they can cut from 5 to 8 percent for 2005. Also, Wruble said, because many departments will not make their projected revenues for 2004, the board asked department heads to curtail spending during the final quarter of the year.

Wruble said over the past several years the county has continued to spend more than it has taken in.

"This has been happening for the last five or six years. We've been operating the last several years using revenue that was reserved revenue," he said. "The revenue we generate in a year does not meet expenses for the year."

Moetteli said it isn't just Huron County that has felt the pinch in recent years and is on the hot seat as the state prepares to balance its own budget.

"It's going on all over the state," she said. "I've got e-mails coming in from other counties asking, 'what is your county doing?' We're not alone in this struggle right now."

Building and Zoning Director Russ Lundberg suggested each department head meet with the committee to which the department is assigned in order to look at the structure of the department and see where cuts could be made. Others suggested the county consider attempting to convince voters to provide an additional operating millage.

Chairman of the Board Mike Gage said in order for such a millage to pass, the public must realize not only the scope of the problem, but that the problem belongs to everyone.

"Does the public perceive we have a problem as big as we do? We believe we have a big problem, and it needs to be addressed," Gage said. "The public needs to perceive that we really are in dire financial straits."